Investors follow what stocks Warren Buffett's Berkshire Hathaway picks for a simple reason. Since Buffett took over the company in the 1960s, it has become the largest financial stock in the U.S. market and has delivered a five-year return of 79% and a 10-year return of 202% versus 60% and 173%, respectively, for the S 500 index.

The best way to see which stocks Berkshire Hathaway is buying or selling is by following the company's 13F reports with the Securities and Exchange Commission. Buffett isn't heavily invested in healthcare stocks, but he's an investor in McKesson (NYSE: MCK) and Johnson Johnson (NYSE: JNJ), which says a lot for these two multinational companies.

Berkshire Hathaway recently trimmed its position by more than 19% in  McKesson but still owns nearly 2.3 million shares of the pharmaceutical distribution company.

Continue reading

Source Fool.com